“Millennials, millennials, millennials!” It seems like this generation has dominated news headlines more than any other. And while we might be getting sick of hearing about them, how they’re “killing” industries and changing culture, all the talk is not without good reason. Millennials make up approximately 24 percent of the total population and have an estimated buying power of 1.7 trillion dollars.* And as we’ve noticed, their power as a generation has the ability to affect massive change – economically, culturally and politically. In automotive specifically, millennials are beginning to flex their influence as they’re expected to generate 40 percent of U.S. new-vehicle unit sales by 2020.*

So, what’s it like when a millennial wants to buy a car? What motivates them to buy? How do they choose their car? Their dealership? Let’s follow a typical Millennial —for our purposes we’ll call him Malik — through the car buying process.

Meet Malik.

Malik has been in the workforce for a couple of years but recently got a new job. Congrats Malik! Malik loves his new job despite the 45-minute commute, but now his old car from college just isn’t going to cut it anymore. With his new salary increase and commute, Malik has both the means and the motivation to start looking for a new car. Malik’s pretty practical, so his main priority is a car that gets him to work. But, he wouldn’t mind picking a vehicle t also fits his personality. As someone who loves to find new bike trails to explore, he knows he wants a vehicle that can keep up with his adventurous lifestyle. Now that Malik is ready to start looking, he starts where any millennial goes when they need information – Google. He starts searching different vehicle types, trying different searches and following them to independent review sites that suggest crossover vehicles like the Honda CR-V. He knows that his sister’s boyfriend has a CR-V, so he shoots him a text to get his opinion and then asks his friends at dinner if they have any suggestions. Armed with three different models, he starts looking for a dealership to take a test drive.

Back to Google! Malik searches for local dealerships that have his three vehicles on the lot, looks at their website and checks their reviews to see what others are saying. He notices that one of the dealership’s websites isn’t mobile-friendly and doesn’t have any social media accounts – so he passes them over (In fact, 60 percent of millennials reject automakers who have a poor website).* He finds a few dealerships that he likes and asks his friends again if they have any dealerships they like. They suggest a couple, and he books test drives at two different dealerships.

Before he walks into the dealership, Malik researches the price and the different options he might be presented with and even builds a deal online with the options he likes. Greeted warmly by a salesperson when he arrives, they take a couple test drives and he decides on the vehicle he wants. When he’s ready to buy, he talks with the salesperson and they walk him through pricing options based on different packages. Like many of his friends, he decides that leasing the vehicle is the best option for him. (In fact, nearly 40 percent of younger millennials would rather lease.)* He appreciates that the salesperson treats him like a peer instead of pressuring him to select different options he doesn’t want. Taking advantage of the digital process at the dealership, Malik electronically signs for his vehicle and walks out of the dealership with his new Honda CR-V! Sounds about right, as 70 percent of millennials who physically visit a dealership walk out with the car they shortlisted.*

Did you notice how Malik’s experience might be different than other customers you see in your dealership? CDK Global is kicking off a blog series based on our recently completed research about millennials and their shopping habits. Stay tuned in the next few weeks as we dig more into how millennials pick their car, their dealership and how you should improve your processes to better reach this powerful generation.

*CDK Global Retail Insights, 2017